Soitec more than doubles net income

By Ann Steffora Mutschler, Senior Editor -- Electronic News, 5/9/2007

Bernin, France-based silicon-on-insulator (SOI) manufacturer Soitec reported late Tuesday that thanks to the adoption of SOI in consumer markets and the success of its major customers, its sales increased by 41.5 percent for the fiscal year ended March 31 to $504.1 million (372 million euros) over $356.2 million (262.8 million euros) for the previous fiscal year.

These results led to a strong increase in the Group’s results, despite the U.S. dollar weakening over the year by 4.6 percent against the euro, the company noted.

Fiscal year 2007 gross profit generated rose by more than half to $146.5 million (108.1 million euros) and the gross margin improved to 29.1 percent of sales, compared to 26.6 percent for the previous year.

Operating income was $65.7 million (48.5 million euros) at a margin of 13 percent of sales. Combined with lower net interest expense, this resulted in more than double the net income for the year of $62.6 million (46.2 million euros).

Operating cash flow generated was equal to 20 percent of sales, totaling $101 million (74.5 million euros) and this covered loan repayments and almost all capital expenditure.

At the year end, the Group held cash balances of $416.2 million (307 million euros).